Fatwa ID: 07172
Answered by: Alimah Saleha Islam
Question:
Respected Muftis, What do the learned scholars say regarding the following matter:
An investor has entered into an Istisna contract with a builder/developer for a construction project for $100,000. Along with the Istisna contract, the builder made a separate promise, which was not included in the contract of Istisna, that he will buy back the same constructed apartment for $200,000 after its completion.
The question in this regard is
Is it permissible under Shariah for the builder to make a separate promise to buy back at a higher price after the completion of the construction project?
Can this separate promise of buyback at a higher price be included under the concept of Bay’ bil Wafa???
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
The Istisna’ method of sale in Sharia is an exception in place of the principle of an ordinary sale. The principle in an ordinary sale transaction is that the commodity must be in existence, and if the commodity doesn’t exist, then the sale of the item will not be permissible. An exception has been made with Istisna’, a type of sale where a commodity is transacted before it comes into existence as in property construction. This is the case which you reference, the investor has transacted an Istisna’ contract with the builder/developer for a construction project.1
Regarding your 1st question: “The builder made a separate promise, which was not included in the contract of Istisna’ – that he will buy back the same constructed apartment after its completion”.
Sharia does not allow the merging of two distinct transactions in one single contract. 2 It is a well-known rule in the Islamic legal system that one transaction cannot be made a pre-condition of another. However, you have stated that a one-sided promise has been made by the builder to repurchase the building constructed upon completion, in which case the sale will not be regarded to be contingent or conditional upon the fulfilment of the builders’ promise to repurchase at a higher price.
Therefore, it is permissible for the builder to make a separate promise to repurchase the completed building after the completion of the project. To protect the seller, a well-executed promissory note can further legally bind the promise with the full effect of the law for support. This will legally bind the Promisor to buy back the completed building from the Promisee and thereby, protect the promise. 3
Regarding your 2nd question: Can this separate promise of buyback at a higher price be included under the concept of Bai’ bil-Wafa?
Some fuqaha have declared that promises can be enforced through courts of law in cases of need. Hanafi jurists have adopted this view with regards to the sale called ‘Bai’ Bil-Wafa’, whereby the buyer promises to the seller that upon receiving the price of the house from him, he will resell the house to him. If the first sale is affected without any condition, and after effecting the sale, the buyer promises to resell the house to the original seller at the same price, this promise is acceptable and creates a moral obligation as well as an enforceable right.4
Based on the above, the promise of buyback at a higher price does not fit within the concept of Bai’ Bil-Wafa as the price of the house is higher.
1 العناية شرح الهداية (7/ 114)
يَجُوزُ اسْتِحْسَانًا وَالْقِيَاسُ يَقْتَضِي عَدَمَ جَوَازِهِ؛ لِأَنَّهُ بَيْعُ الْمَعْدُومِ، وَقَدْ نَهَى – صَلَّى اللَّهُ عَلَيْهِ وَسَلَّمَ – عَنْ بَيْعِ مَا لَيْسَ عِنْدَ الْإِنْسَانِ وَرَخَّصَ فِي السَّلَمِ، وَهَذَا لَيْسَ بِسَلَمٍ؛ لِأَنَّهُ لَمْ يُضْرَبْ لَهُ أَجَلٌ، إلَيْهِ أَشَارَ قَوْلُهُ: بِغَيْرِ أَجَلٍ.
وَجْهُ الِاسْتِحْسَانِ الْإِجْمَاعُ الثَّابِتُ بِالتَّعَامُلِ، فَإِنَّ النَّاسَ فِي سَائِرِ الْأَعْصَارِ تَعَارَفُوا الِاسْتِصْنَاعَ فِيمَا فِيهِ تَعَامُلٌ مِنْ غَيْرِ نَكِيرٍ، وَالْقِيَاسُ يُتْرَكُ بِمِثْلِهِ
(و قوله) و لأنه يجوز فيما فيه تعامل لا فيما لا تعامل فيه.
2 مسند أحمد ط الرسالة (6/ 324)
“نَهَى رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ عَنْ صَفْقَتَيْنِ فِي صَفْقَةٍ وَاحِدَةٍ”
3 An introduction to Islamic Finance, pg 87-89 (Maktaba Ma’ariful Quran, Karachi)
4 (7/ 114: رد المحتار على الدر المختار) وَفِي جَامِعِ الْفُصُولَيْنِ أَيْضًا: لَوْ ذَكَرَا الْبَيْعَ بِلَا شَرْطٍ ثُمَّ ذَكَرَا الشَّرْطَ عَلَى وَجْهِ الْعَقْدِ جَازَ الْبَيْعُ وَلَزِمَ الْوَفَاءُ بِالْوَعْدِ، إذْ الْمَوَاعِيدُ قَدْ تَكُونُ لَازِمَةً فَيُجْعَلُ لَازِمًا لِحَاجَةِ النَّاسِ تَبَايَعَا بِلَا ذِكْرِ شَرَطِ الْوَفَاءِ ثُمَّ شَرَطَاهُ يَكُونُ بَيْعَ الْوَفَاءِ؛ إذْ الشَّرْطُ اللَّاحِقُ يَلْتَحِقُ بِأَصْلِ الْعَقْدِ عِنْدَ أَبِي حَنِيفَةَ ثُمَّ رَمَزَ أَنَّهُ يَلْتَحِقُ عِنْدَهُ لَا عِنْدَهُمَا، وَأَنَّ الصَّحِيحَ أَنَّهُ لَا يُشْتَرَطُ لِالْتِحَاقِهِ مَجْلِسَ الْعَقْدِ. اهـ وَبِهِ أَفْتَى فِي الْخَيْرِيَّةِ وَقَالَ: فَقَدْ صَرَّحَ عُلَمَاؤُنَا بِأَنَّهُمَا لَوْ ذَكَرَا الْبَيْعَ بِلَا شَرْطٍ ثُمَّ ذَكَرَا الشَّرْطَ عَلَى وَجْهِ الْعِدَةِ جَازَ الْبَيْعُ وَلَزِمَ الْوَفَاءُ بِالْوَعْدِ اهـ.
Only Allah (عز و جل) knows best.
Written by Alimah Saleha Islam
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
